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TMI Blog2019 (8) TMI 295X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness expediency also. In our view, in the light of the facts and circumstances of the case on hand, as discussed above, since the aforesaid expenditure may be regarded as an integral part of the profit earning process and not for an acquisition of new asset or right of permanent character, the possession of which is a condition for carrying on business, the said expenditure is to be regarded as revenue expenditure. Consequently, grounds 3 to 5 of assessee s appeal are allowed. Charging of interest under section 234D - HELD THAT:- Assessee denies himself liable to be charged interest u/s 234D of the Act. The charging of interest is consequential and mandatory and the AO has no discretion in the matter. This proposition has been uphel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of Shakuntala Hegde L/R of R. K. Hegde Vs. ACIT in ITA No.2785/Bang/2004. 2.2 After having heard both parties in the matter; the reasons adduced by the assessee in its petition for condonation of delay and taking into account the principles laid down by the Hon ble Apex Court in the case of MST Katiji and Others (supra), for dealing with matters relating to condonation of delay, we are of the view the delay of 16 days in filing the appeal before Tribunal is to be condoned and we do so. Consequently, the assessee s appeal for Assessment Year 2008-09 is admitted for consideration and adjudication. O R D E R 3. Briefly stated, the facts of the case are as under:- 3.1 The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e or is capital in nature as held by the authorities below. In the order of assessment, the AO was of the view that the aforesaid expenditure incurred for designing of logo was capital in nature as it results in enduring benefit to the assessee. On appeal, the CIT(A) upheld the AO s view in the matter. 5.2.1 The learned AR was heard in support of the grounds raised. According to the learned AR, the expenditure incurred on designing the logo was in order to facilitate the day to day business activities of the assessee and has not resulted in the assessee acquiring an asset of enduring nature and is therefore allowable as revenue expenditure. It is argued that mere logo alone would not generate business, but it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or gives enduring benefit to the assessee and therefore treated it as capital expenditure and allowed the assessee depreciation thereon. On appeal, the CIT(A) upheld the AO s view. 5.4.2 We have perused the relevant bill for the expenditure of ₹ 5,80,000/- incurred by the assessee for designing of logo which gives the break up of various items that constitute such expenditure. A copy of the bill issued to the assessee by Scion Advertising Pvt. Ltd., bearing bill No.6298 dated 08.06.07 for ₹ 5,80,000/- plus Advertising Servicing Tax of ₹ 71,688/- (totaling ₹ 6,51,688/-) has been placed on record. The same is extracted hereunder:- 5.4.3 From a perusal of the aforesaid bill ..... X X X X Extracts X X X X X X X X Extracts X X X X
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